Business

Oil Firms' $93 Billion Profits: What Energy-Crisis Earnings Really Show

Why energy crises and record oil-company profits happen at the same time -- explained with verified company results, not speculation.

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1973 EMBARGO

The OPEC Embargo Quadruples Prices

Arab OPEC members embargoed Israel's allies in October 1973, roughly quadrupling nominal oil prices within months and founding the modern energy-crisis era.

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RECORD HIGH

Crude Hits $147.27, Then Crashes

Oil reached a then-record $147.27/barrel on July 11, 2008, before collapsing to $30.28 by December as the global financial crisis unfolded.

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NEGATIVE PRICES

WTI Futures Turn Negative

On April 20, 2020, pandemic lockdowns collapsed demand so sharply that WTI futures fell below zero for the first time in history, settling near -$37.63/barrel.

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RECORD PROFITS

Record Profits Amid the 2022 Crisis

Russia’s invasion of Ukraine sent Brent near $139/barrel. ExxonMobil ($55.7bn), Shell ($42.3bn) and Chevron ($35.4bn) all posted record annual profits.

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POLICY RESPONSE

The Windfall Tax Debate

The UK and EU introduced temporary windfall levies on energy profits in 2022; the US did not. The IMF recommended targeted, temporary measures only.

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ONGOING, 2026

The Strait of Hormuz Shock

A 2026 Middle East war closed the Strait of Hormuz, sending Brent to $119.50 on March 9 before G7-coordinated reserve talks helped moderate prices.

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